Asia FX moves little with focus on US-China trade, dollar steadies ahead of CPI
Direct Digital Holdings, Inc. (NASDAQ:DRCT), an advertising services company with a market capitalization of just $3.24 million, disclosed the sale of 220,000 shares of its Class A common stock in unregistered transactions, according to a recent SEC filing. The shares were sold for a total cash consideration of $241,095.80 after a discount of $10,048.20.
This sale was reported today, Monday, and represents more than five percent of the total shares issued and outstanding as of September 30, 2024. According to InvestingPro analysis, the company's financial health score is rated as WEAK, with significant debt burden and rapid cash burn identified as key concerns.
The transactions took place between the end of the most recent reporting period and December 3, 2024. The sale was conducted under an Equity Reserve Facility as part of a Share Purchase Agreement with New Circle Principle Investments LLC, who has confirmed their status as an "accredited investor" under the Securities Act of 1933.
Direct Digital Holdings, based in Houston, Texas, operates within the advertising sector under the SIC code 7310. The company's Class A common stock trades on the Nasdaq Stock Market under the ticker DRCT. The recent sale of equity securities was exempt from registration under the Securities Act pursuant to Section 4(a)(2) of the Act.
The company's filing also included financial statements and exhibits, with the cover page formatted in Inline Extensible Business Reporting Language (iXBRL). Diana P. Diaz, the Chief Financial Officer of Direct Digital Holdings, executed the SEC filing on behalf of the company.
In other recent news, Direct Digital Holdings faced significant challenges in the third quarter of 2024, as evidenced by a sharp decline in revenue. The company reported a year-over-year revenue drop of 85%, from $59.5 million in Q3 2023 to $9.1 million in Q3 2024, primarily attributed to a damaging blog post by Adalytics Research regarding their supply-side platform, Colossus SSP. Despite these obstacles, Direct Digital Holdings has outlined a recovery strategy, which includes a diversification and optimization plan.
The company also provided revised revenue guidance for fiscal years 2024 and 2025, with projections set at $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025. Additionally, Direct Digital Holdings has secured a $20 million equity reserve facility with New Circle Principal Investments, indicating a financial buffer for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.